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24.03.2009 Business & Finance

Amal Bank MD waist deep in BoG`s daming report Board of Directors could face sanctions if…

By Daniel Nonor - Ghanaian Chronicle

The Board of Directors of Amal Bank could be incurring the wrath of the Bank of Ghana if it tarries further in carrying out a directive to relief the Managing Director of the Bank of his post, The Chronicle has learnt.

The Bank of Ghana in a directive to the chairman of the Board of Directors of the bank has called for the removal of the Managing Director, Mr.Oluwole Ajomale for an alleged gross violation of the country's banking laws.

A document on the findings of the central bank, stated that the OSU Branch of the bank served as a hub where fake foreign currency were paid in cash into the Foreign Accounts of the bank, contrary to the bank of Ghana notice number BG/GOV/SEC/88/4.

The document also cited that Mr. Oluwole Ajomale made payments of forex cash into FCAs and directed transfer of funds abroad in settlement of goods up to the tune of $25,000 without initial documentation in contravention with the bank of Ghana notice number BG/GOV/SEC/2007/3.

Penalties of GH¢48,000 was however imposed on the bank and GH¢18,000 on the MD. According to sources, the central bank initiated the investigation into the activates of the bank after a client reported that he had been issued with fake Dollar currencies at the OSU branch of the Bank.

Sources close to The Chronicle indicate that barely three weeks after the directive from the Bank of Ghana, the Mr. Ajomale still holds his position as the Managing Director of the bank. This, analysts say, could call for sanctions on the board if it tarries further in carrying out the directives.

Mr. Anane Antwi, an investment lawyer explains that there is a provision in the banking act which gives the bank of Ghana the powers to disqualify any member of a board of a bank if in its opinion, it is deemed fit that the individual was unfit to be a member of the board.

He stated that the individual could, however, challenge the discretion of the central bank by going through the appropriate legal channels, without which he said the board could be incurring the wrath of the bank if it fails to comply with its directives.

Amalgamated Bank Limited (AmalBank) was incorporated on May 29, 1997, under the Companies Code 1963 (Act 179), licensed by the Bank of Ghana on December 13, 1999, to carry on with the business of merchant banking under the Banking Law 1989, PNDCL 225 and started operations on December 20, 1999.

Mr. Ajomale, the man at the center of the controversies has extensive experience that spans the financial services industry and has held senior management positions in various banks in Nigeria since 1997. Until his appointment as MD of AmalBank, Mr. Ajomale was the General Manager (International Banking) at Oceanic Bank International PLC of Nigeria where he was responsible for managing the bank's relationship with multilateral institutions as well as overseeing the establishment of the bank's offshore subsidiaries.